USD/JPY is still seen navigating the 132.85-134.70 range for the time being, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we noted that ‘downward momentum is building’ and we expected USD to weaken. However, we held the view that ‘the major support at 132.85 is likely out of reach’. Our view was not wrong as USD dropped to 133.00 and then rebounded to close little changed at 133.66 (-0.04%). Downward pressure has faded and today, USD is likely to consolidate in a range of 133.00/134.00.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (26 Apr, spot at 133.60). As highlighted, USD appeared to have entered a consolidation phase and for the time being, it is likely to trade in a range of 132.85/134.70.”